mukiha wrote:the deal wrote:mukiha wrote:[quote=the deal]@Mukiha get your facts right please.
Here is the formula from the NSE booklet I downloaded in 2009:
I[t] = I[t-1] * 20th-root-of ({P[1 t]/P[1 t-1]} * {P[2 t]/P[2 t-1]} * .... * {P[20 t]/P[20 t-1]})
Where:
I[t] = index at time t
I[t-1] = index at time t-1
P[j t] = price of stock j (i.e., 1, 2, 3, 4, .... 20) at time t
P[j t-1] = price of stock j at time t-1
You see it is just an average of prices. There is no mention of capitalisation.
Unfortunately, this booklet is not available in the new-look NSE website, otherwise I'd have given you the link.
Now go check you facts and let's compare.
@Mukiha since you are an elder i will save you from the bashing
you need to read further
http://www.bloomberg.com...uote?ticker=KNSMIDX:IND[/quote]
I'm afraid Bloomberg is wrong on this one.
Since you are mathematically knowledgeable, why not test the formula I have given above. You will see that it yields the correct index for a given day.
@the deal;
The question of whether the NSE-20 is capitalisation weighted or not is still not resolved.
You insisted it is; I said it is NOT.
You referred me to Bloomberg to support your position; I gave you the formula used in calculating the NSE-20 {thereby proving Bloomberg wrong...ahem!}
Did you ever test the formula?
Nothing is real unless it can be named; nothing has value unless it can be sold; money is worthless unless you spend it.